Digital Finance Market Report 2025

The digital finance market size has grown rapidly in recent years. It will grow from $8.51 billion in 2024 to $10.12 billion in 2025 at a compound annual growth rate (CAGR) of 18.9%. The growth during the historic period can be credited to the rising demand for cashless transactions, the surge in e-commerce activities, the expansion of digital payment infrastructure, enhanced government initiatives, and the growing need for real-time payment solutions.

The digital finance market size is expected to see rapid growth in the next few years. It will grow to $20.0 billion in 2029 at a compound annual growth rate (CAGR) of 18.6%. The projected growth period is expected to be driven by the increasing number of tech-savvy consumers, heightened investments in fintech startups, greater digitalization within financial services, rising demand for internet banking, and broader internet penetration. Key trends in the forecast period include advancements in digital finance technologies, blockchain adoption, AI technology integration, progress in mobile technology, and widespread adoption of financial services technology.

The increasing smartphone penetration is expected to drive the growth of the digital finance market in the coming years. Smartphone penetration refers to the proportion of people within a population who own and actively use smartphones. This penetration is rising due to declining device costs, which make smartphones more affordable and accessible to a wider audience, resulting in higher adoption rates globally. Smartphones facilitate digital finance by allowing users easy access to financial services via mobile apps, enabling them to make payments, transfer money, and manage accounts anytime and anywhere. For example, in February 2023, according to a report published by Uswitch Limited, a UK-based online and telephone comparison service provider, 71.8 million mobile connections were active in 2022, marking a 3.8% increase from 2021. Furthermore, by 2025, the UK population is expected to reach 68.3 million, with 95% owning smartphones. Consequently, the rise in smartphone penetration is contributing significantly to the expansion of the digital finance market.

Leading companies in the digital finance sector are focusing on developing cutting-edge digital finance technologies, such as AI-powered fintech software, to improve automation, compliance, and scalability within financial services. AI-powered fintech software consists of sophisticated digital platforms that utilize artificial intelligence to automate banking processes, ensure real-time regulatory compliance, and deliver intelligent financial solutions. For instance, in July 2025, Laraware Pvt Ltd, an India-based company, launched Nxtbanking, an AI-driven end-to-end fintech platform that offers scalable, secure, and intelligent financial solutions through advanced API integration and automation. It features an 8-layer KYC and compliance system conducting real-time verification of Aadhaar, PAN, GSTIN, and CIN, alongside AI-powered OCR for document reading, facial recognition with liveness detection, geo-tagging, and device fingerprinting. Security is enhanced through automated escalation and blacklist checks to prevent fraud. Designed to be secure, scalable, and developer-centric, Nxtbanking is positioned to advance India’s digital financial ecosystem.

In July 2025, Stripe Inc., an Ireland-based payment infrastructure company, acquired Orum for an undisclosed sum. This acquisition aims to bolster Stripe’s real-time bank payment capabilities by integrating Orum’s advanced payment orchestration and instant bank account verification technologies. This integration will enable faster, more reliable money transfers across ACH, RTP, FedNow, and wire rails, thereby expanding Stripe’s non-card payment infrastructure and improving cash flow solutions for platforms, marketplaces, and enterprise clients. Orum is a US-based provider of digital finance solutions.

Major players in the digital finance market are Pine Labs Private Limited, PhonePe, Cashfree Payments Private Limited, Razorpay, Rupeek Fintech Private Limited, Indifi Technologies Private Limited, KreditBee Technology Private Limited, Lendingkart Technologies Private Limited, Easebuzz Software Private Limited, Kissht Limited, Juspay Technologies Private Limited, Freo Payments Private Limited, FlexiLoans Services Private Limited, Instamojo Technologies Private Limited, PayNearBy, Cashe Finance Private Limited, MoneyView Finance Private Limited, Niyo Limited, Fibe Technologies Private Limited, and Fintso Technologies Private Limited.

North America was the largest region in the digital finance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in digital finance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the digital finance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Digital finance refers to the use of digital technologies within the financial sector to enable more efficient, transparent, and accessible financial activities. It encompasses electronic systems and digital platforms that facilitate financial operations, data management, and communication. This shift improves the speed, accuracy, and scope of financial transactions, while fostering inclusivity and minimizing dependence on traditional, manual processes.

The key components of digital finance consist of software, hardware, and services. Software includes digital programs and platforms that support financial activities such as mobile applications, online banking systems, digital wallets, payment gateways, and data security solutions. These are utilized by both small and medium enterprises as well as large enterprises and can be deployed via on-premises or cloud-based models. Software applications cover areas such as infrastructure, payment and settlement, financing, investment management, and insurance, serving various end users including banking, financial services, insurance, retail, healthcare, government, and others.

The digital finance market research report is one of a series of new reports that provides digital finance market statistics, including digital finance industry global market size, regional shares, competitors with a digital finance market share, detailed digital finance market segments, market trends and opportunities, and any further data you may need to thrive in the digital finance industry. This digital finance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The digital finance market consists of revenues earned by entities by providing services such as robo-advisory, crowdfunding, cryptocurrency services, and digital accounting. The market value includes the value of related goods sold by the service provider or included within the service offering. The digital finance market also includes sales of card readers, biometric authentication devices, cash deposit machines, digital kiosks, and token generators. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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